Mchea. Canone's Trading arm is located in Singapore. The entire purpose is to centralise the export sales from its Malaysia's operations to overseas customers The Trading arm earns the differences between higher selling prices to customers and intercompanies purchases.
@treasurehunt Exactly, that's why they may not have big exposure to cukai makmur as sizable chunk of profit are not derived in Malaysia. Furthermore, the profit earned in Malaysia is captured in several entities instead of just one entity. Hence, taking into these consideration may not even have exposure to cukai makmur.
Despite movement restriction in Vietnam and Malaysia, Can1 still recorded profit. Lower revenue thus translate to lower profit, if they regain in full capacity ,I think they should have a better quarterly report on 4th quarter .
I owned Kianjoo berhad (KJB)share previously as long term investor until the day it was privatized by Can1 KJB was valued at 1.4 B , KJB was also bid by a Japanese consortium value it around 1.4x B when they want to get the 32.9 % KJB share owned BY Can1. --------------------------------------------------------------------------------------- Before privatization KJB market cap around 1.4B Can1 around 600M after privatization Today market cap about 800m that mean a combined market cap of 2 B become 800M Can1 sold their creamer business for 1B that is extra money so now at this price u buy Canone is like last time u buy KJB and get free can1 share with Extra 1B cash proceed from selling the creamer business + their factory land machinery +etc
Business model market condition 2015 vs 2022 didn't change much business model didn't change much recession proof industry market leader in South east Asia and Malaysia ( 70% market share ) now share price around RM 4
In summary , you can do your math and its just my opinion . Buy at your own risk P/s I owned Canone bhd share
analysis from treasure hunt was good, the main problem with this counter is lack of coverage by analyst + the management team not doing enough cooperate presentation in engaging with investor unlike Able Global (Johor Tin )
@treasurehunt , a lot of possibilities, we wont know about it. They are operating at 60 % capacity , if still can make money is very good . risk to Can1 is minimal .now Can1 drop due to market sentiment 1.The reemergence of omicron virus won't affect them much if another lock down , last MCO Can1 still can operate at 60% unlike a lot of factories . 2.The risk of force labor issue is minimal unlike the glove and EMS sector . 3.No single concentration of main customer . 4. Foreign worker : Can1 don't depend on Indonesia worker unlike construction and plantation sector
Can or cannot in this market will need Mr Market to answer ....
E. RISKS Volatility in commodity prices. Raw material generally makes up 70% to 80% of Can-One’s cost. Any big changes in commodity prices will result in margin compression as it takes time for the company to pass on costs to its customers. Foreign exchange risks. Can-One’s profitability is subject to currency effects as the raw material it uses are directlyor indirectly quoted in USD. About 35% to 40% of the group’s raw material costs are quoted in USD while the remaining is sourced locally in ringgit. However, its income is naturally hedged as about a quarter of its sales are for export market. Operational risks. Can-One is subject to local and foreign policies that could impact its profitability. Such policies include minimum wage, import and export policies among others. As a manufacturing company, it may also experience operational disruption such as pro-longed machinery breakdown/ accidents that could potentially affect its output. As an established company, we believe that Can-One have implemented sufficient measures to prevent such events and minimise impact of these incidents.
The Group's net revenue for Q4, 2021 increased by RM101.2 million or 15.3% to RM763.8 million. Loss before tax reported by the Group was RM199.0 million in Q4, 2021 mainly due to the following: - Inventories written down of RM26.9 million; and - Impairment of property, plant and equipment and right-of-use assets of RM214.0 million.
alibiii. You have to read Box-Pak quarterly report first in the Review of Performance and follow by CanOne. Impairment PPE & inventories written down is derived from the total value in Canone after deducting Box-Pak's figures.
Not much explanation given on the massive inventory & property, plant & equipment write down.
I personally have written-off this counter. I made >25k the first round. My 2nd strike doesn't look good in the near term. So I'll leave it aside & just collect whatever microscopic dividends they declare.
China-based canmaker Baosteel’s first beverage can plant in Malaysia has started production. Located on a 16-acre site within the Eco Business Park V at Puncak Alam in the Klang Valley of Selangor state, construction of the plant began in December 2020 with commercial cans being made this month (February). The first phase of the RMB461 million (US$66m) project has the capacity..
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